Question

On the far right side of the AS curve, the economy is producing ________ potential, and on the far left of the curve, it is producing ________ potential.

Answer 1

On the far right side of the AS curve, the economy is producing above potential, and on the far left of the curve, it is producing below potential.

What is AS curve?

It should be noted that the AS curve simply means the aggregate supply curve and it's the quantity of real GDP that's supplier by the economy.

In this case, on the far right side of the AS curve, the economy is producing above potential, and on the far left of the curve, it is producing below potential.

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